Axis of O-RAN: Japan's Rakuten to build 1&1's German 5G network

Germany’s 1&1 has signed a long-term partnership agreement with Rakuten Group to build its mobile network. The work to build the network will start in the next quarter, by building a fully virtualized mobile network based on OpenRAN technology.

Under the agreement, Rakuten will be responsible for building the active network equipment. It will also oversee the performance of the mobile network and provide software to automate network management.

Rakuten jumped 7.5 percent after Nikkei Asia reported the deal is worth between JPY250bn to JPY300bn ($2.3bn to $2.7bn) and will run over the next 10 years.

The Tokyo-headquartered company will utilise the OpenRAN mobile network technology where all network functions are on cloud and run by software. 

The German company is attracted to Rakuten as a pioneer of open RAN (sometimes shortened to O-RAN), a fashionable concept that promises to end what critics see as the tyranny of vendor “lock-in.

Single giant vendor

In most of today’s mobile networks, all the various components and software at a particular site are supplied by a single giant vendor. Due to the way standards have developed, an Ericsson radio is unlikely to be compatible with computing products from Huawei, any more than pickled herring works with dim sum. Open RAN’s new interfaces are an attempt to fix this sort of interoperability problem.

“With Rakuten, we have the world’s only OpenRAN expert on our side who really has extensive practical experience with this new technology. Rakuten ideally complements our know-how in telecommunications networks, data centers and cloud applications. Together we are building a high-performance mobile network that has extensive automation and agility to fully exploit the potential of 5G,” says Ralph Dommermuth, CEO of 1&1 AG.

“Through complete virtualization and the use of standard hardware, we can flexibly combine the best products. This will make us a manufacturer-independent innovation driver in the German and European mobile market,” he added.

“We are honored to have been selected by 1&1 as their partner to build the first fully virtualized mobile network in Europe,” comments Mickey Mikitani, Chairman and CEO of Rakuten Group, Inc.

Like 1&1, we launched our mobile network in Japan with a vision to transform the industry, Mikitani said. “Through technological innovation, we have been able to offer high quality services at an affordable price that challenge the market and we are very excited to now have the opportunity to share this experience and know-how with 1&1 through the Rakuten Communications Platform and to jointly create a next generation network that will set new standards for future mobile communications in Germany and across Europe,” he noted.

Germany’s 1&1 has signed a long-term partnership agreement with Rakuten Group to build its mobile network. The work to build the network will start in the next quarter, by building a fully virtualized mobile network based on OpenRAN technology.

Under the agreement, Rakuten will be responsible for building the active network equipment. It will also oversee the performance of the mobile network and provide software to automate network management.

Rakuten jumped 7.5 percent after Nikkei Asia reported the deal is worth between JPY250bn to JPY300bn ($2.3bn to $2.7bn) and will run over the next 10 years.

The Tokyo-headquartered company will utilise the OpenRAN mobile network technology where all network functions are on cloud and run by software. 

The German company is attracted to Rakuten as a pioneer of open RAN (sometimes shortened to O-RAN), a fashionable concept that promises to end what critics see as the tyranny of vendor “lock-in.

Single giant vendor

In most of today’s mobile networks, all the various components and software at a particular site are supplied by a single giant vendor. Due to the way standards have developed, an Ericsson radio is unlikely to be compatible with computing products from Huawei, any more than pickled herring works with dim sum. Open RAN’s new interfaces are an attempt to fix this sort of interoperability problem.

“With Rakuten, we have the world’s only OpenRAN expert on our side who really has extensive practical experience with this new technology. Rakuten ideally complements our know-how in telecommunications networks, data centers and cloud applications. Together we are building a high-performance mobile network that has extensive automation and agility to fully exploit the potential of 5G,” says Ralph Dommermuth, CEO of 1&1 AG.

“Through complete virtualization and the use of standard hardware, we can flexibly combine the best products. This will make us a manufacturer-independent innovation driver in the German and European mobile market,” he added.

“We are honored to have been selected by 1&1 as their partner to build the first fully virtualized mobile network in Europe,” comments Mickey Mikitani, Chairman and CEO of Rakuten Group, Inc.

Like 1&1, we launched our mobile network in Japan with a vision to transform the industry, Mikitani said. “Through technological innovation, we have been able to offer high quality services at an affordable price that challenge the market and we are very excited to now have the opportunity to share this experience and know-how with 1&1 through the Rakuten Communications Platform and to jointly create a next generation network that will set new standards for future mobile communications in Germany and across Europe,” he noted.